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Packaging Industry in India- An Overview

24 December 2010- World Packaging Organisation (WPO) has given the slogan "Better Quality of Life Through Better Packaging" which indicates the importance of packaging in the modern world economy. The scenario for packaging industry in India too is similar to that of other developed parts of the world like the US and Europe. Per capita packaging consumption of India offers huge business opportunity to packaging companies. The packaging industry in India is currently USD 14 billion or Rs. 63,000 crores. It is growing at the rate of more than 12% pa and is expected to cross a turnover of USD 19 billion (Rs. 85,000 crores) by the year 2015. There are many reasons for the growth of packaging industry in India. Let's have an industry overview to understand the same.

Packaging Industry in India- Growth Factors

The ever increasing Indian middle class population as well as the fast expanding retail sector of Indian economy are two of the main factors promoting the growth of packaging industry. Other factors responsible for the growth of packaging industry include:

• Industrialization and urbanization has lead to increased income per head leading to greater consuming of products. More products and increased purchasing capacity mean more higher buying choices. So, now the Indian consumers prefer to buy products with attractive products made so through packaging.
• Liberalized economy has exposed the Indian markets to the global industry standards where attractive packaging designs mean more business. So, the companies too pay more attention to packaging and packaging designs
• Rural marketing and low purchasing power of middle or lower class Indians has led to the growth of small packaging products like sachets etc.

Packaging Industry in India- Packaging Materials Used

The classification of packaging materials used in India can be broadly divided into three heads- Rigid Packaging, Semi Rigid Packaging, and Flexible Packaging

Rigid Packaging- For rigid packaging, the packaging industry uses such materials as bottles, metal cans, wooden boxes, metal boxes, aerosol cans, battery cell cans, aluminum collapsible tubes, injection molded plastic containers made of PVC, PET, HOPE, barrels made from HOPE, paperboards, and corrugated boxes.

Semi Rigid Packaging- For semi rigid packaging, the packaging industry uses such materials as carton box, plastic bottles, corrugated boxes etc.

Flexible Packaging- Flexible packaging includes multi-layered laminated sheets of single or a combination of substrates such as plastic, paper or aluminium. For flexible packaging, the packaging industry uses such materials as, papers, plastic packaging films, aluminum foil, cellophane etc.

Packaging Industry in India- Some Facts

Packaging industry of India is growing at more than 12% annually. Although flexible packaging is catching up fast, rigid packaging is still dominant in the packaging industry in India. Flexible packaging is gaining vast acceptability due to the protection it offers to the products against environmental threats like moisture, heat, and chemical reaction. Convenience in handling products as well as cost benefits are also some factors that are making companies attracted towards flexible packaging industry in India.

Although packaging products made of plastic have gained vast acceptability, Indian packaging industry still remains attracted to paper and paperboard consumption. Currently, India is ranked 15th in the world for its paper and paperboard consumption and is expected to improve its rank in the future. The total demand for paper currently is estimated to be around 6 mn tones, of which about 40% is consumed by the packaging industry in India. Indian packaging machinery exports are rapidly growing. packaging. Food and Pharma packaging are the key driving segments of the packaging industry in India.